Cryptocurrency has quickly become one the fastest growing markets that we have in the modern day. With many individuals deciding to get involved in the market for the purpose of investment, it seems like it only has room to grow further. One of the biggest issues with the market of cryptocurrencies continues to be the fight between regulators and those who are investing and want exactly the opposite.
This has been a consistent disagreement around the world with many individuals voicing their complaints. One of the next regulatory moves that is being put in place around the world is regulatory measures surrounding paying taxes on cryptocurrency holdings or investments. Tyson Cross, tax attorney with the Cross Law Group, stated that “Every single exchange of virtual currency is a taxable event — whether to buy a cup of coffee or exchange one type of virtual currency for another.
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Not just transactions where it’s sold for fiat. “Cryptocurrencies are fungible in ways stocks are not,” says Jason Tyra of Jason M. Tyra CPA. “There are a lot of things you can do with them, especially with Ether now — the ability to carry out smart contracts — that you can’t do that with securities. There are a lot more things that could generate tax consequences than with a generic share of stock.” He further stated that “The IRS is concerned people are using cryptocurrency for tax evasion or at the very least have taxable income they’re not reporting from cryptocurrency.”
As the industry is able to mature in age and the amount of money being put into it, the hopes are that regulatory measures will be able to work with the individuals rather than against them. Only time will tell what happens to this relatively new market.